The Yarrabah council is considering increasing charges from next financial year, but not for residents.

ABC Stateline Queensland - file image

Queensland Local Government Minister David Crisafulli says Indigenous councils will have to find new ways to raise revenue from residents if they are to keep receiving current levels of funding.

Mr Crisafulli will unveil the plan at a two-day meeting of Indigenous mayors, CEOs and councillors in Cairns in the state's far north today.

Councils will get reduced base-level funding and qualify for extra if they collect water and other amenities charges.

Mr Crisafulli says the plan aims to make councils more financially sustainable.

"It's about reward for effort and the thing that frustrates me is that for so long we've been falling over ourselves to help those communities that haven't been prepared to help themselves," he said.

"It's been to the detriment of those who do."

Mr Crisafulli says while some communities will find the changes difficult to implement, they are necessary.

"In many cases they're actually having to collect money from people who are relatives and people who are friends," he said.

"I get that, I understand that, which is why my message to the mayors today is point the finger of blame at me.

"I will accept the responsibility for this, I will accept the short-term pain because I know at the end of it we can have functioning Indigenous councils that operate the way ... [they] should."

However, the chief executive officer of a far north Queensland Aboriginal council says it will be difficult to raise revenue by increasing charges for residents.

Yarrabah Aboriginal Shire CEO Jeff Jenkins says the council is considering increasing charges from next financial year, but not for residents.

"What council will be looking at is water, sewerage and road charges and increasing them to the services that can most afford them, and that's probably mostly the State Government agencies, for example - the police, the hospital," he said.

"But I think it's difficult to get it from houses that are already - while they're receiving welfare money - find it difficult to keep their rent payments without putting further charges on the community."

Hope Vale Mayor Greg McLean says the plan has merit.

"I hope that we're the first cab off the rank to fill the boot up and drive away with some of that money," he said.

But Mapoon Mayor Peter Guivarra says the changes pit councils against one another.

"He is actually taking money from the under-performing councils and giving it to the better performing ones," he said.

He says most of his constituents will not be able to afford extra charges.